Irish tour operators have recorded a dramatic decline in business, with overseas holiday bookings falling as much as 25 per cent. The downturn has not been eased by reassurances over jet-fuel supplies and a drop in the cost of flights to popular sun destinations.
A slump in bookings has also been reported in markets across Europe. A recent industry conference in Malta heard about a similar decline across all travel sectors as a result of a collapse in consumer confidence.
Paul Hackett, the CEO of online travel agency Click & Go, told The Irish Times that fears about widespread flight cancellations and jet-fuel supply issues were ”overstated massively” in April. This has contributed to the slump in bookings.
He said airlines had been emphasising that jet-fuel supply was not an issue, but expressed concern that much of the damage had already been done.
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“Prices are on the floor, but even those lower prices are not having the desired impact,” said Hackett, who is a board member for the Irish Travel Agents Association. He noted the fall in demand was being replicated across Europe, with companies struggling to convince people there was “no impediment to booking”.
Since the start of March, there had been a huge amount of negativity “between the flight-cancellation stuff and the jet-fuel surcharges”. He suggested the “significant downturn is right across the market”.
Key booking months of March and April had flatlined, he said, while May is proving no better. “It is 25 per cent down and that is huge,” said Hackett.
Airlines across Europe are cutting prices for summer flights to counter a delay in bookings. Carriers and travel analysts say consumers are holding off on booking over warnings about possible fuel rationing relating to the closure of the Strait of Hormuz.
Since the first widespread warnings of jet-fuel shortages at the start of April, prices have been dropping for flights to some of the most popular destinations in southern Europe, according to one analysis of the cheapest fares on Google Flights.
Between April 9th and May 6th, airfares for a week-long trip in July declined for 27 of the top 50 European flight routes to the Mediterranean.
Prices dropped 10 per cent or more for 15 routes, including from Heathrow to Nice, Manchester to Palma and Gatwick to Barcelona. Dublin to Malaga fell about 15 per cent.
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